#1: D-Day For Wall Street
Next week, the largest banks reveal just how bad it is out there. What’s the trade ahead of earnings from Citibank (C), Merrill (MER) and more.
CNBC’s Charlie Gasparino joins the panel for this conversation. Following is a synopsis of his main points.
My sources tell me that Citibank will receive an infusion of $15 billion from a consortium, says Gasaprino and I think that’s why the stock is up. Now two questions are left- how many layoffs will come and how big will the write-down be? I suspect on Tuesday we’ll know a lot more.
I’ve been saying for months that Merrill will take a $12 billion write-down for the quarter, says Gasparino. That means total write-downs could be as high as $20 billion.
Is there a trade here?
I would rather own MER than C says Guy Adami.
“Amen,” adds Jeff Macke.
Or you could buy Citigroup stock and sell the calls against it, says Pete Najarian.